XCEL HEALTH AND LIFE INSURANCE
CHAPTER EXAM LAWS AND RULES
Questions with 100% CORRECT ANSWERS
(Verified | Updated2025/2026 RATED A+
Prepaid dental plans differ from most other types of dental plans in what way? - CORRECT ANSWERS
Closed panel of dentist can only be used
A producer has indicated to a potential client that the proposed life insurance policy is covered by the
Arizona Life and Health Insurance Guaranty Association. This action taken by a producer is - CORRECT
ANSWERS Prohibited by law
A prepaid dental plan has an agreement in place with a network of dentists which - CORRECT ANSWERS
accepts an established amount that is considered full payment for services rendered
Which of the following actions is considered to be an unfair trade practice? - CORRECT ANSWERS
A producer who sells insurance to an individual by means of threat
After a life insurance policy sold in Arizona has been in force for ______ year(s), it becomes
incontestable. - CORRECT ANSWERS 2
Insurance crimes which affect interstate commerce are prosecuted by the - CORRECT ANSWERS
US Attorney General
Life settlement brokers are NOT allowed to - CORRECT ANSWERS Complete transactions prior
to being approved for a license
,I'm regards to the Affordable Care Act (ACA), which of these is NOT a role of a health insurance
exchange - CORRECT ANSWERS Contact the employer if an employee stop's coverage under a
plan offered in the exchange
A producer MUST notify the Director for - CORRECT ANSWERS Conducting business under an
assumed name
Which of these is NOT considered a Federal punishment for unfair and deceptive insurance practices -
CORRECT ANSWERS community service
A television advertisement features a health insurance product that is endorsed by a specific group. In
this advertisement, - CORRECT ANSWERS Any control by the insurer over this group must be
disclosed
The Affordable Care Act (ACA) established "exchanges" in order to - CORRECT ANSWERS
assist individuals and small businesses when making their health insurance purchase
Group life plans sold in Arizona typically contain a conversion option. If the insured elects this option,
the new policy - CORRECT ANSWERS does NOT require evidence of insurability
What is the best way to define life insurance replacement? - CORRECT ANSWERS a
transaction in which a new life insurance policy is purchased and an existing life insurance policy is
surrendered
A(n) ___________insurer operates in the U.S but is headquartered outside the U.S. - CORRECT
ANSWERS Alien
Mentally or physically handicapped dependent children MUST be covered under an individual health
insurance policy - CORRECT ANSWERS Until they become self-supportive
, Someone who is is licensed to negotiate a life settlement contract is called a(n) - CORRECT ANSWERS
Life settlement broker
All of the following are typically covered under dental insurance EXCEPT - CORRECT ANSWERS
Treatment which began before the eligibility date
An example of endodontic treatment is a - CORRECT ANSWERS root canal
An Arizona resident producer must be at least ____ years of age - CORRECT ANSWERS 18
Which of the following actions would be considered a felony in the State of Arizona? - CORRECT
ANSWERS Attempting to defraud an insurer
A producer is proposing that a policyowner replace an existing individual health insurance policy with a
new one. Under the new contract, a pre-existing conditions exclusion - CORRECT ANSWERS
may reduce the insured's benefits
Which of these is typically regarded as a major treatment in an indemnity dental plan? - CORRECT
ANSWERS dentures
An annuity contract may be returned for a full refund during the - CORRECT ANSWERS Free-
look period
All of the following are covered under most dental plans EXCEPT for - CORRECT ANSWERS
mouth cancer
How long must a producer maintain customer records for an insurance transaction? - CORRECT
ANSWERS Three years
CHAPTER EXAM LAWS AND RULES
Questions with 100% CORRECT ANSWERS
(Verified | Updated2025/2026 RATED A+
Prepaid dental plans differ from most other types of dental plans in what way? - CORRECT ANSWERS
Closed panel of dentist can only be used
A producer has indicated to a potential client that the proposed life insurance policy is covered by the
Arizona Life and Health Insurance Guaranty Association. This action taken by a producer is - CORRECT
ANSWERS Prohibited by law
A prepaid dental plan has an agreement in place with a network of dentists which - CORRECT ANSWERS
accepts an established amount that is considered full payment for services rendered
Which of the following actions is considered to be an unfair trade practice? - CORRECT ANSWERS
A producer who sells insurance to an individual by means of threat
After a life insurance policy sold in Arizona has been in force for ______ year(s), it becomes
incontestable. - CORRECT ANSWERS 2
Insurance crimes which affect interstate commerce are prosecuted by the - CORRECT ANSWERS
US Attorney General
Life settlement brokers are NOT allowed to - CORRECT ANSWERS Complete transactions prior
to being approved for a license
,I'm regards to the Affordable Care Act (ACA), which of these is NOT a role of a health insurance
exchange - CORRECT ANSWERS Contact the employer if an employee stop's coverage under a
plan offered in the exchange
A producer MUST notify the Director for - CORRECT ANSWERS Conducting business under an
assumed name
Which of these is NOT considered a Federal punishment for unfair and deceptive insurance practices -
CORRECT ANSWERS community service
A television advertisement features a health insurance product that is endorsed by a specific group. In
this advertisement, - CORRECT ANSWERS Any control by the insurer over this group must be
disclosed
The Affordable Care Act (ACA) established "exchanges" in order to - CORRECT ANSWERS
assist individuals and small businesses when making their health insurance purchase
Group life plans sold in Arizona typically contain a conversion option. If the insured elects this option,
the new policy - CORRECT ANSWERS does NOT require evidence of insurability
What is the best way to define life insurance replacement? - CORRECT ANSWERS a
transaction in which a new life insurance policy is purchased and an existing life insurance policy is
surrendered
A(n) ___________insurer operates in the U.S but is headquartered outside the U.S. - CORRECT
ANSWERS Alien
Mentally or physically handicapped dependent children MUST be covered under an individual health
insurance policy - CORRECT ANSWERS Until they become self-supportive
, Someone who is is licensed to negotiate a life settlement contract is called a(n) - CORRECT ANSWERS
Life settlement broker
All of the following are typically covered under dental insurance EXCEPT - CORRECT ANSWERS
Treatment which began before the eligibility date
An example of endodontic treatment is a - CORRECT ANSWERS root canal
An Arizona resident producer must be at least ____ years of age - CORRECT ANSWERS 18
Which of the following actions would be considered a felony in the State of Arizona? - CORRECT
ANSWERS Attempting to defraud an insurer
A producer is proposing that a policyowner replace an existing individual health insurance policy with a
new one. Under the new contract, a pre-existing conditions exclusion - CORRECT ANSWERS
may reduce the insured's benefits
Which of these is typically regarded as a major treatment in an indemnity dental plan? - CORRECT
ANSWERS dentures
An annuity contract may be returned for a full refund during the - CORRECT ANSWERS Free-
look period
All of the following are covered under most dental plans EXCEPT for - CORRECT ANSWERS
mouth cancer
How long must a producer maintain customer records for an insurance transaction? - CORRECT
ANSWERS Three years
